Broadband – Internet Rates May Go Up by 30% as DoT Decides to levy Fee
on it in Unified Licence
by Sanjay Bafna on August 31, 2013 12:26 pm | General 35 Comments
Using the Internet or Broadband may become costlier up to 30% as the
Department of Telecom changed its rules of telecom licences agreement
bringing revenue from Internet or Broadband services under its cess net.
Internet - Broadband
Earlier the initial version of the Unified Licence which was introduced
on August 2,2013 , DoT had exempted Internet – Broadband services
revenue from adjusted gross revenue (AGR) – part of telecom company’s
earnings on which annual licence fee is levied. But now DoT issued
corrigendum to this new telecom licences agreement (Unified Licence)
bringing revenue from these services under its cess net.
Corrigendum for Internet Services Under Unified Licence notified by the DoT
It had said that AGR will be calculated after deducting revenue from
pure Internet (access and content) services, sales tax paid to the
government and roaming revenue paid to other operators from the total
revenue earned by telecom service providers.
However, in the corrigendum on calculation of AGR DoT has mentioned
”Revenue from Pure Internet Service under heading B-Deduct stands
deleted.”
Under the new Unified licences telecom operators, including Internet
services providers, will have to pay uniform licence fee of 8 per cent
annually on AGR.
The Internet Service Providers Association of India has warned the step
would lead to hike in consumer rates by up to 30%.
Mr. Rajesh Chharia, President, ISPAI said ”the move is a major setback
in broadband penetration, especially in rural India, as there will be
cascading effect and license fee on multi point will increase broadband
price by 30 per cent”.
All new telecom services providers are required to take Unified Licence,
while as of now there would be no effect on existing companies because
will have to migrate to the new licence on expiry of their permits for
continuing their services.
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With care and regards,
Kannan ...
Skype: kankale63
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